New Delhi : Union Communications Minister Jyotiraditya Scindia has shared some important information about satellite broadband. He has said that spectrum for satellite broadband will be allocated instead of auctioned. It is noteworthy that India's leading industrialists Mukesh Ambani and Sunil Mittal had demanded its auction. However, Starlink, the company of Elon Musk, known as the world's richest person, has supported its allocation.
However, satellite broadband spectrum will not be given free and the Telecom Regulatory Authority of India (TRAI) will decide the price for it, Scindia said in an interview with PTI. Scindia has said that every country has to follow the International Telecommunication Union i.e. ITU, which is the organization that sets the policy for spectrum in space or satellite. ITU has been very clear about spectrum being given on 'assignment' basis. Also, if you look around the world today, I don't see a single country that auctions spectrum for satellite.
Emphasis on allocation of spectrum
India is a member of the International Telecommunication Union (ITU) of the United Nations Agency for Digital Technology. Global competitors like Musk's Starlink and Amazon's Project Kuiper have supported administrative allocations. Ambani's Reliance Jio is pushing for allocation of such spectrum through auctions to provide a level playing field to legacy operators who buy spectrum, set up infrastructure like telecom towers. At the same time, Mittal had stressed the need to bid for such allocation at an industry function last month in the presence of Prime Minister Narendra Modi.
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Share in satellite broadband sector
Jio and Mittal's Bharti Airtel are the first and second largest telecom companies in India. They believe that giving away satellite broadband spectrum at a pre-determined price by the government will create an unequal competitive environment, as they will have to compete in auctions to obtain spectrum for their terrestrial 'wireless phone networks'. Both the companies are also competing for a stake in the satellite broadband sector.
demand for administrative allocation
Musk-led Starlink is seeking an administrative allocation of licenses in line with the global trend as it seeks to enter the world's fastest-growing mobile telephone and internet market. Scindia has said that the Telecom Act 2023 passed in December has put the matter in 'Schedule 1′, which means the allocation of satcom spectrum will be done administratively. Such allocation would be at a price decided by the government and would allow foreign companies like Starlink to provide voice and data services. If the spectrum were auctioned, it would have become expensive for Starlink to launch services.
No information about application
Starlink has applied for a license to begin operations in the country. However, Scindia did not give any information regarding this application. The minister said that the regulatory process is very clear and transparent. He pointed out that the new Telecom Act has been passed and satellite spectrum is clearly part of 'Schedule 1'. Scindia has said that therefore, we are ready to consider the application of any entity wishing to invest in India at this time. I think only one or two licenses have been given out now. Whoever wants to participate, India will certainly welcome him.
(with agency input)
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